The Colorado residential real estate market has enjoyed a resurgence since the Great Recession that occurred from 2008 to 2009. While a great deal of coverage has documented the comeback nationwide, the Centennial State’s commercial properties continued to thrive due to the following:
- Record deal volume
- Reduced cap rates
- Record prices per square foot
Like many other states, Colorado has been bolstered by a U.S. economy closing in on a record economic expansion of almost 122 months, the lengthiest since 1854, the year economists started tracking data.
From 2009 to 2018, retail investment increased from $687 million to $2.35 billion, while average cap rates fell from 8.7 percent to 6.9 percent.
During the same period, new construction fueled net absorption at a little over 35,000 square feet to 2.4 million. That included projects ranging from small multitenant retail to outdoor malls. More of the prominent developments enjoy square footage from several hundred thousand to over one million.
The Mile-High City is now considered a real estate market to keep an eye on. Much of the activity is coming from out-of-state buyers. The benefits and amenities that attract these prospective investors include consistent job growth year after year, diversity in the economy, and easy access via a well-renowned mass transit system.
With all this growth comes one obvious question. Can it last? The first half of this year sees volume at $982 million, down from the same time last year when the volume was at $2.3 billion. Average cap rates remain steady. Experts site the market in a state of flux, if not normalizing.
Colorado remains not only a popular place to buy a house, but also invest in commercial property. An attorney’s guidance can make a significant difference.